Reversal of ITC Claim on Blocked Credit in GST Annual Return

[VEMULA CHANDRASEKHAR]

We have claimed the ITC on the Vehicles which is a blocked credit u/s 17(5) of CGST Act 2017 in F.Y 2017-18.

What would be the treatment of such credit in GST Annual Return and Audit? If we need to reverse it ,under which table we need to disclose in GSTR 9 & 9C ?

Do we need to pay tax on the such ITC claimed (to be reversed) along with the interest, what would be the rate of interest (18% or 24% ) ,and for which period interest is calculated? What would be the treatment if the ITC was claimed but not yet utilized which was still reflecting in credit ledger, in such case what would be the period of charging the interest and liability payable?

[PAWAN KUMAR]

Dear sir,

As per my view the details to shown in table 7E of GSTR-9 and 12F of GSTR-9C. The interest rate is 18 percent from the date of taking ITC till the date of payment.

[NISHANT SHAH]

Dear Sir,

As per my view, it can't be included in Table 7E since this column is only for Ineligible ITC u/s 17(5) being disclosure portion but in your case you already availed its credit, you should pay this amount through cash ledger along with interest @18% p.a from the date of its utilization till date of making payment by DRC-03.

[PAWAN KUMAR]

Kindly read the heading and instructions for 7E. Then only you will understand the requirement of filling ITC reversed.

AI Summary

Reversal of blocked input tax credit must be disclosed in annual return and paid with interest and cash ledger entry. Reversal of blocked Input Tax Credit on vehicles should be disclosed in Table 7E of GSTR 9 and the corresponding reconciliation entry in Table 12F of GSTR 9C; the reversed amount is to be paid into the cash ledger with interest from the date the credit was taken (or, if utilized, from the date of utilization) until the date of payment, and payment where credit was utilized should be effected via DRC 03.